Council supports developer’s ‘workforce housing’ application

     The same developers, BR3, who built the new Hy-Vee Dollar Fresh store are asking for the city’s support with a housing project.

   During the June 20 Monticello City Council meeting, the council approved supporting a Workforce Housing Application for BR3 for the BR3 Subdivision, to be located east of Dollar Fresh. (Council member Brenda Hanken was opposed.)

   BR3 is interested in building a 12-unit apartment building on an additional 1.25-acre lot that was added near the Dollar Fresh property on E. First Street. They are proposing to construct “workforce housing” through the Iowa Economic Development Workforce Tax Credit program.

   City Administrator Russ Farnum explained that “workforce” refers to low-to-moderate-income housing.

   “It’s affordable for people with a full-time, median-wage job,” he said.

   To qualify for the program, BR3 needs a Resolution of Support from the city, as well as a commitment of a minimum of $1,000 per unit toward the project, or a total of $12,000.

   City Administrator Russ Farnum noted that time is of the essence because the application deadline is June 30.

   “If accepted and funded through the Iowa Workforce program, then BR3 would still negotiate a development agreement with the city pertaining to the details of the project,” the information presented to the council noted.

   It continued, “Although some grading work and other improvements were completed on Lot 2, there was neither a site plan not civil engineering plans submitted for the subject property. Therefore, there is not sufficient information provided to address concerns such as the flood plain, service locations, curb cut, building location, parking, or any other details at this time. The developer will have to provide that information prior to development.”

   Right now, the lot is zoned commercial. BR3 would have to seek approval to rezone the lot for residential.

   Hanken questioned allowing BR3 to construct a building in a flood plain.

   “They could raise the building elevation and be outside of the flood plain,” said Farnum.

   “What is their projected timeline to come before the council?” asked Council member Wayne Peach of additional information.

   “That depends on state approval,” said Farnum of the grant application.

   In terms of the $12,000 commitment, Farnum suggested that could possibly be in the form of property tax rebates.

   “If they don’t get the state funding, the project is moot and the city is not on the hook for anything,” continued Farnum.

   If the funding is approved, Farnum said more decisions would have to be made in terms of zoning and a site plan.

   “The city would still hold the reins down the line,” he told the council.

   Offering city support of the application does not hold the city to any financial commitments at this point.

   “You’re just giving your support of the project,” noted Farnum.

   Mayor Dave Goedken reminded the council that there were objections to another property in the flood plain when it came before the council last fall.

   “Does it absolutely have to happen at this location or can it be at another location?” asked Goedken.

   Farnum said BR3’s application to the state is intended for this proposed structure at the proposed location.

   Hanken said she was objecting to the project because it’s located in a flood plain and due to lack of additional details about the project.

   “They would not build on this lot and let it flood,” said Council member Candy Langerman of BR3 implementing preventative measures, much like they did in elevating the Dollar Fresh property.

   “We’re not approving for this to happen,” clarified Peach. “Any step of the way, we or the DNR could say no.”

   “It’s not a bad investment in commercial property,” said Council member Tom Yeoman. “Do we need workforce housing in the community?”